The proposed Value Added Tax (VAT) increase is set to significantly affect grocery bills for many South Africans; however, there are specific items you can include in your trolley that will remain exempt from this new tax.
Andrew Bahlmann, the Chief Executive Officer of Deal Leaders International, broke down what the new increase will mean for your food basket.
He noted that while individual increases may seem modest, the cumulative effect on low-income households can be more pronounced.
“For instance, the Pietermaritzburg Economic Justice and Dignity Group reported that the average cost of a household food basket increased from R5,277.30 in February 2024 to R5,313.22 in February 2025. Applying the 0.5% VAT increase to this basket adds approximately R26.57 per month, or R318.84 annually,” according to Bahlmann
So what food items are exempt from VAT?
The current list of food items exempt from VAT include:
- Brown bread
- Maize meal
- Rice
- Maize meal
- Vegetables
- Samp
- Fruit
- Mealie rice
- Vegetable oil
- Dried mealies
- Milk
- Dried beans
- Cultured milk
- Lentils
- Brown wheaten meal
- Pilchards/sardines in tins
- Eggs
- Milk powder
- Edible legumes
- Dairy powder blend
- Pulses of leguminous plants
New items
The list of VAT zero-rated food items has been expanded effective May 1, 2025.
The new items added to the list of zero-rated foods include edible offal of sheep, poultry, goats, swine, and bovine animals; specific cuts such as heads, feet, bones, and tongues; dairy liquid blend; and tinned or canned vegetables.
Treasury noted that the additional food items proposed for zero rating in the 2025 budget were targeted because there would be relatively limited revenue forgone to the fiscus.
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